6 Responses to “What will happen if you die and still owe finance on your car?”

any assets he owned will be converted into cash by his solicitor or who ever is responsible for dealing with his probate, detors have to paid off first including any fees incurred by the solicitor or whoever handles the probate, if he has no money and didnt take out insurance, the finance company are entitlted to reclaim the car, sorry for your loss.

Who ever is in charge of his affairs would be the person to take care of this. He should of had life insurance which would bury him and also take care of some of his bills. If not then get a lawyer because these debtors are going to want their money no matter what. To these companies don’t think that death is a good reason not to pay your bills.

I’m not a legal buff but I imagine that the finance company will repossess the car, as it has not been fully paid for. If you are genuinely needing to know about this, contact your local Citizen’s Advice centre. Somebody there should be able to give you better advice than me.

If you’re in the UK …I THINK (not 100%) that as more than 30% of the debt has been paid that there is no direct relationship between the car and the debt…. so they can’t just reposess the car.

What will happen is as others have said is that all the debts will be pooled and must be paid off by the proceeds of the estate (any assets, including the car), what’s left is then distributed according to the will.